Octave Holdings Enters Wisconsin

Octave Holdings and Investments has paid $30.7 million for West Allis Towne Centre, a 325,309-square-foot power center in West Allis, Wis. KPR Centers sold the asset one year after having acquired it for $22 million from Kimco Realty, according to CommercialEdge data.

The transaction represents the company’s first purchase through its newly launched Octave Realty Fund X LLC and also its first Wisconsin foray. KeyBank provided a $20.7 million loan for the acquisition, the same source shows.

Located at 6702 W. Greenfield Ave., West Allis Towne Centre was 95 percent leased at the time of sale. Anchored by Pan Asia, the shopping center features a diverse mix of regional and national retailers such as Hobby Lobby, Burlington, Planet Fitness, Ross Dress for Less and Five Below.

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Completed in 1987, the retail asset encompasses four buildings spread on some 22 acres. The power center underwent a cosmetic renovation back in 2011. Pinnacle Leasing and Management—a wholly owned subsidiary of Octave—will manage the property going forward.

The shopping center serves more than 73,000 residents within a 2-mile radius, with the average household income of approximately $85,000, according to Octave. The property is near Interstate 94, in an area where the daily traffic count reaches more than 150,000 vehicles. Downtown Milwaukee is some 7 miles away.

Milwaukee’s retail sector slows down

Milwaukee’s retail market trends indicated a slowdown in the first quarter of this year, according to a recent Cushman & Wakefield report. On the investment side, activity was limited as many buyers and sellers continued to take a cautious approach.

The metro recorded 172,527 square feet of negative absorption pushing the vacancy rate up 50 basis points year-over-year to 7.4 percent. Asking rents fell 3.1 percent quarter-over-quarter to $13.64 per square foot, as availability of Class A space remained limited.